New U.S. Patents Significantly Expand VantageScore’s Leadership in Inclusive and Innovative Machine Learning for Credit Scoring

VantageScore, a leading national Credit-scoring and data insights company, announced today that it has been awarded two new U.S. Patents for its groundbreaking work using machine learning to broaden the number of people who can be scored while simultaneously increasing the predictive power of credit-scoring models. As a result of these patents, more consumers will gain access to affordable credit products, while more banks and lenders will be able to expand their customer base by using more innovative and predictive credit-scoring models.  VantageScore is used by 8 out of the top 10 banks in the U.S. as well as more than 3,400 lenders, fintechs, consumer websites and government entities. In 2023, more than 27 billion VantageScore credit scores were used, an increase of 42% compared to the previous year.

VantageScore’s newly issued U.S. patent titled “Method and Systems for Enhancing Modeling for Credit Risk Scores” recognizes the company’s innovation in identifying new credit risk-related consumer attributes that, in turn, expand the universe of scoreable consumers, including those currently excluded by conventional scoring models. An additional patent titled “System, Method and Apparatus for Generating Credit Scores” recognizes VantageScore’s use of alternative data to further expand the number of people who can be scored with VantageScore credit-scoring models.

The issuance of these most recent patents underscores VantageScore’s commitment to expanding predictive power and inclusion in the financial services industry. As part of a longstanding legacy and history of innovation, VantageScore was the first credit-scoring company to include rental data in tri-bureau credit-scoring models and the first company to include trended data in tri-bureau credit-scoring models in order to improve their predictability.

“VantageScore is the recognized leader in applying explainable and supervised machine learning in credit-scoring,” said Silvio Tavares, President and CEO of VantageScore. “VantageScore has been at the forefront of including high-quality alternative data in order to create more inclusive and predictive credit scores. We will continue to be the innovation leader by developing models that accurately and transparently score more people.”

Conventional models often exclude individuals with sparse credit histories or no recent credit activity, leaving millions without access to essential financial products. By incorporating machine learning techniques, VantageScore transcends these limitations, effectively capturing ‘credit-invisible’ consumers and helping extend credit opportunities to an estimated 33 million more individuals.

For more information on VantageScore’s credit scoring models, please visit www.vantagescore.com/lenders.

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